Samsung To Change Its Management Structure To Empower The Individual

The South Korean electronics maker is set to make big management reforms next month.

Samsung was founded in 1938, making noodles and selling dried seafood. Today the company is one of the leading electronics makers in the world. To stay on top continues change is necessary. A big change is coming to Samsung next month.

Samsung plans to break away from a top-down management approach established 23 years ago in something the company calls Frankfurt Declaration. In a top level management meeting in Frankfurt, Germany, Samsung Chairman Lee Kun-hee made this declaration. According to Korean news service Yonhap he said back then: "change everything but your wife and kids."

The company plans to change to empower the individual employee. The new plan calls for simplifying ranks, horizontal titles, selective promotion and compensation based on outcome.

According to Yonhap, Samsung Electronics Vice Chairman Lee Jae-yong has been seeking innovations through "creative thoughts and autonomy" instead of the "group's power" based on the Frankfurt Declaration.

The Author

Luigi LugmayrLuigi Lugmayr (Google+) is the founding chief Editor of I4U News and brings over 15 years
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